Computer and printer major HP Inc. is joining the ongoing season of tech layoffs and will cut about 4,000 to 6,000 jobs.
In its earnings report for the fourth quarter of 2022, the company said it expects to cut its total global workforce by about 4,000 to 6,000 employees, or 7 to 11 percent of its workforce.
“These measures are expected to be completed by the end of fiscal year 2025,” HP said in a statement late Tuesday.
The company has announced a “Future-Ready Transformation Plan” that will save at least $1.4 billion in annual total operating costs, restructuring and approximately $1 billion in other costs by the end of fiscal 2025.
HP Inc. and its subsidiaries reported net income of $63 billion for fiscal 2022, down 0.8 percent from a year earlier.
“Despite operating in a volatile macro-environment and softening demand in the second half, we finished our fiscal year strong. In the fourth quarter, we met our non-GAAP EPS target while completing our three-year value creation plan and exceeding our key metrics,” said Enrique Lores, HP President and CEO.
“Looking forward, the new Future Ready strategy we introduced this quarter will allow us to better serve our customers and create long-term value by reducing costs and reinvesting in key growth initiatives to position our business for the future,” Lores said.
Net income of Personal Systems decreased by 13 percent year-on-year to $10.3 billion. According to the company, the net income of printed products decreased by 7 percent year-on-year and amounted to 4.5 billion dollars.
The global computer market had a difficult year after the pandemic boom.
Declines continued in the traditional PC market as global shipments fell 15 percent year-on-year to 74.3 million units during the third quarter of 2022.
India’s traditional PC market fell 11.7 percent year-on-year to 3.9 million units shipped in the September quarter after eight straight quarters of growth, according to IDC.
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